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Kmart's Strategies for Competition Promotion

Describe about the Law of Management for Competition Policies and Strategies.

In the current document discussed below various questions would be answered relating to the competition policies and strategies followed by an organization for the benefit of the people at large; it also give a brief about the cases of negligence done on the part of any organization and reliefs which could be awarded to the plaintiff; at last the standards which prevails in an organization for its employees have been talked about.

1: Kmart is a discount department store retailer in Australia and New Zealand and Kmart Tyre and Auto Service is a provider of retail automotive services, repairs and tyres in Australia. Kmart’s vision is to ensure it is where families come first for the lowest prices on everyday items. It was established in1969 with the opening of its first store in Burwood, Victoria. It was the very first discount department store in Australia. It offers the people of Australia the lowest price on everyday items and focus on growing the business through operational excellence, creating adaptable stores, driving a high performance culture and investing in the store network. The corporation aims to deliver profitable growth through increased volumes, enhanced product ranges, expansion of its digital strategy and operational efficiency throughout the business. There has been various strategies of which the three main strategies are as follows:

Kmart’s strategy remains constant to provide with everyday products at the lowest price;

Deliver development and improvement in productivity and efficiencies for further investment;

It focuses on creating a stimulating and encouraging work environment so everyone can thrive.

These strategies have been adopted in order to promote competition and also to levy the competition and consumer act which has been applicable on all the Australian corporations for leading a corporation in a healthy way.

The market is highly concentrated and competition has been anticipated to increase as international retailers to enter the market and existing competitors expand store networks.

The market players would want or desire to adopt such policies which the organization has adopted in order to attract more customers. This would automatically promote competition in the market and then they would focus on fulfilling the customer satisfaction in order to be in the market. The organization will remain focused on maintaining its lowest price position and ensure the product pricing architecture continues to deliver value. It also would continue to lead price and value despite increased competition from new entrants, online and existing competition. Australian competition and Consumer Commission has been an organization which promote competition under which it was prescribed under the competition and consumer Act. The main objective of the act was to eliminate any kind of act which restricts the flow of competition in the market. The corporation has been recommended that as it complies with the competition act and laws which have been regarded and imposed on all the organizations of Australia. So, it should comply with it and also at the same time it should not indulge in any of the acts which would effect the competition for the prevailing market players in the market. As the market should not create such situations that effect the work of others.

Compliance with Australian Competition and Consumer Act

It has been recognized by the organization that as the organization operates in a complex and dynamic environment with sophisticated and diverse wants and desires if people, both in Australia and through regional and global trades. The organization does not work individually but it has been its employees who put in their efforts as they just keep producing and releasing the products for the customers. They also work from home or any place where they go so that the work would not hamper and the consumers get benefit. At the same time, the inquiry conducting and resourcing authorities of competition and regulatory bodies have strengthened in order to detect any anticompetitive behavior. It focuses on the prosecution and penalties both with more streamlined cooperation among the jurisdictions in enforcement matters of the organization. So the organization should comply with the competition regulations and rules which can help and grant aid to the consumers against any unfair agreement terms; protecting them against any unconscionable behavior of the corporation and nay misconduct. The organization therefore should make such regulations which protect the society and consumers at large as a satisfied consumer makes the goodwill of the organization to develop in a positive and good way. Competition has also been regarded as the procedure by which the rival business strives to maximize their earnings by developing and offering desirable goods and services to customers. It can also lead to lower cost of resources; better services; better information etc. All the new startup businesses believe that they should discover the needs and wants of the consumer in order to be in the market. Because, it was the consumer only who have the power either to make a company stay or blown away. If the customer would not be happy than the work of the corporation would not prevail in a market. Also, if the strategies made by the organization would properly work and fulfilled than the other market players would also do the same and would be boosted up by what has been done by the other organization.

2: Memorandum stating grounds for negligence action against BW

To:  The Board of Directors, BW

From: Manager, Safety Operations, BW

Subject: Regarding grounds for a successful case of negligence



In this memorandum the civil liability with the duty in regard to negligence and duty of care would be discussed keeping in mind the incident which occurred. Also some recommendation would be discussed at the end.

Importance of Complying with Competition Regulations

Negligence can be defined as the act of failing to do what a prudent individual would have done in the situations (Bugg, 2006). In order to institute an obligation, a plaintiff must first establish that the defendant owe a duty of concern towards the plaintiff (Supreme Court of Tasmania, 2016). So, before a plaintiff could recover reimbursement  from a defendant for the act of negligence, he must prove three things in regard to the defendant that:

He owed a duty of concern;

He violated that duty of concern; and

Private harm or land damage suffered by the plaintiff was as a result of that violation.

In order to determine whether there was a duty of concern or not various factors have to be taken into account by the Court (Hobart Community Legal Service, 2013). The factors include:

The type of injury suffered by the plaintiff;

The defendant’s control over the circumstance that gave rise to the injury, and the plaintiff’s vulnerability to that injury;

The character of the relationship of the plaintiff and defendant, as compared to other duty relationships;

Ethical and moral price, including human rights considerations; and

Consistency and coherency of lawful morals and relationships.

The concept of a duty of concern functions as a control device which allows the court to determine, as a case of policy, the situations in which there should be liability for negligent act (Australasian Legal Information Institute, 2016). Courts have experimented with various approaches to the new cases, developing obligations incrementally, emplaning with due regard to policy considerations (Handford, 1982).

In the matter of Donoghue v Stevenson (1932) it was discussed that the modern doctrine of tort law was born out from this case as it concern a right of a customer to claim damages from a manufacturer of bottled ginger beer for nervous shock induced by the discovery of a fermenting snail in the bottle, after its contents had been drunk. It was the case in which extension has been made of the concept of duty of care (The Personal Injury Lawyers, 2016).

In the matter of Baltic Shipping v Dillon High Court of Australia (1993) 176 CLR 344 it was held that reimbursement  were available where the suffering or disappointment arises from a violation of an express or implied term or the suffering was consequent upon the suffering of a physical harm (Australian Contract Law, 2013).

In another matter of Caparo Industries Plc v Dickman [1990] a threefold test was established. It stated that the injury must be reasonably foreseeable; there must be an association of proximity among the plaintiff and defendant; and it must be just, immediate, and rational to oblige a liability.

Memorandum Stating Grounds for Negligence Action against BW

Though, emotional suffering has been recognized as an actionable tort (Australian Law Reform Commission, 2016). It means that the plaintiff could recover reimbursement for emotional suffering caused by injury but only if was escorted by a physical or financial harm (Holme, 2004) (Rajendran, 2004).

In the case of Rodrigues v state it was held that the plaintiff’s could recover damages for a negligent infliction of emotional suffering as a result of carelessly caused flood reimbursement to their house.

In the case of Giller v Procopets it was held by the court that the claimant could recover reimbursement  for disturbing suffering in her fair claim for infringement of confidence.

Similarly in the matter of Doe v. Australian Broadcasting Corporation it was held that a fair reimbursement can be awarded for contravention of self-assurance for harm and suffering as a part if a larger award for other wrings.

As per Division 4 of the civil liability act 2002 section 26H certain limits have been mentioned which were being forced on injuries which occur for any non- economic loss. It states that a court would not be in a place to award injuries for non- financial loss except as allowed by this Division (Australasian Legal Information Institute, 2016).

Also, according to Section 26I it has been clearly describes the non-financial loss injuries limited to the employees return amount. Under it a court may award reimbursement  for the non- monetary failure up to a maximum of the total amount to which a worker would be allowed as reward under this division of part 3 of the Workers Reimbursement  Act 1987. As per it if the worker had received a injury that entitled the worker to reward under that act and that resulted in a degree of enduring harm that was same as the offender’s degree of lasting injury (Australasian Legal Information Institute, 2016).

When formatting  the total amount to which a worker would be allowed for reimbursement under the provision of Workers Reimbursement  Act 1987, the sum was to be resoluted under the section as it was in force when the destruction to the lawbreaker was acknowledged (Australasian Legal Information Institute, 2016).

According to Division 5 of the act authority has been given to make subtractions from reimbursement under section 26J.

As per section 5L of the civil liability act the defendant has no liability for harm suffered from an obvious risk of dangerous recreational activities. Also as per section 5M of the act the defendant have no duty of care for recreational activity where risk warning. Section 5R describes in brief about the standard of contributory negligence as therefore by referring to these sections it can be stated that BW was not liable for the act which was done not by the negligence of the organization and so no damage would be paid off.

In the case Action Paintball Games Pty Ltd (in liquidation) v Barker [2013] NSWCA 128 it has been held that a general warning about the risks involved was sufficient, without the need to describe each separate or specific risk or hazard and also on the basis that Action Paintball had given a risk warning to the plaintiff within the meaning of section 5M(1) of the CLA and therefore no duty of care was owed to her.

So, it has been highly recommended that the organization should made pertinent reward to the plaintiff for the loss incurred by him due to the steel which broke down due to corrosion. Organization should also purchase new tools for restricting any future danger or harm which could be caused if new machinery would not be adopted.

The organization for making the services better can make a disaster organization team in prior for dealing with such mishappening for the future if occur by any means (Bernstein, 2016).

3: The National Employment Standards (NES) are the 10 minimum stipulations and state of affairs of an employment which were mentioned in Part 2-2 of the Fair Work Act, 2009. It applies to the system of the national workplace relations of the workers. NES are the minimum required standards which cannot be overridden by the terms of the organization agreements or awards (Fair Work Commission, 2016).

The ten minimum standards which every employment has to follow include the following matters:

The employees should work for maximum of 38 weekly hours in addition to rational additional hours;

Workers in some situations can make a request for making a change in their arrangements of work (Australian Government, 2016);

Parental leaves and connected entitlements should be given up to 12 months for unpaid leave for each employee plus they have the privilege to make a request for an additional 12 months unpaid leave;

Annual leaves should be provided which includes 4 weeks paid leave pr year plus an additional week for some shift workers (Fair Work Ombudsman, 2016);

Private/ carer’s leave and compassionate leaves should also be provided which includes 10 days paid private leave; 2 days unpaid carer’s leave when required; and 2 days compassionate leave unpaid as required;

Unpaid leave should be offered for chosen crisis activities and up to 10 days of paid leave for service of Jury;

An agent right for the workers as mentioned in a relevant pre-modernized reward, awaiting the growth of a consistent national long service leave standard;

On every public holiday a paid off would be given except where logically requested to work;

Up to 4 weeks notice of execution plus an additional week for the staff over 45 years of age who have been in the job for at least 2 years and up to 16 weeks’ division pay on being jobless both based on the span of service (The Australian Workers Union, 2016); and

The Fair Work data statement was available from the Fair work Ombudsman (Australasian Legal Information Institute, 2016).

As per section 26(4) of the Fair Work Act 2009 applies to the service generally but if it applies subject to the constitutional limitations then it would relate to:

All the manager and workers in the state or territory; or

All manager and workers in the state or territory except those recognized by an act of the state or territory.

Being a HR manager a person should ensure that the corporations comply with the 10 national standards and should not contravene them as per section 44 of the act; ensure terminations don’t contravene; and maintain fully complaint time and wages records.

HR manager should follow all the national standards but at the same time he should and can ask the workers to work more and can cut off their leaves depending upon the work load for any particular month. But the HR manager should also make such changes as when required as it was not necessary that in the organization all the standards would apply. He should include them while dealing with the employees but also should include those standards which would help the organization and can make some changes and ask the workers to work accordingly

For this reason, it does not matter whether or not the regulation also was applicable to other individuals, or if or not an exercise of a power under the regulation affects all the individuals to whom the rule was applicable. Similarly, if any of these points would be violated then he must be punished under section 550 of the act.

The HR Manager should understand the problems of the workers and should see that the corporation in which it has been working complies with all the standards which have been made and drafted for the benefit of the working staff. If all the staff would be granted such compliance with the standards then it would make them feel that they work in a safe environment. So the HR should not dispense with such polices which have been specially made fir the employees.


Australasian Legal Information Institute. (2016) CIVIL LIABILITY ACT 2002. [Online] Commonwealth Numbered Acts. Available from: [Accessed on 22/09/16]

Australasian Legal Information Institute. (2016) COMPETITION AND CONSUMER ACT 2010 - SCHEDULE 2. [Online] Commonwealth Numbered Acts. Available from: [Accessed on 22/09/16]

Australasian Legal Information Institute. (2016) FAIR WORK ACT 2009 (NO. 28, 2009). [Online] Commonwealth Numbered Acts. Available from: [Accessed on 22/09/16]

Australian Contract Law. (2013) Baltic Shipping v Dillon High Court of Australia (1993) 176 CLR 344. [Online] Australian Contract Law. Available from: [Accessed on 22/09/16]

Australian Government. (2016) The National Employment Standards. [Online] Australian Government. Available from: [Accessed on 22/09/16]

Australian Law Reform Commission. (2016)Breach of Confidence Actions for Misuse of Private Information. [Online] Australian Government. Available from: -emotional-suffering [Accessed on 22/09/16]

Bernstein, J. (2016) The 10 Steps of Crisis Communications. [Online]  Bernterin Crisi Management. Available from: [Accessed on 22/09/16]

Bugg, T. (2006) Negligence and damages – personal injury, property damage and pure economic loss. [Online] Law Council of Australia. Available from: [Accessed on 22/09/16]

Fair Work Commission. (2016) National employment standards. [Online] Fair Work Commission. Available from: [Accessed on 22/09/16]

Fair Work Ombudsman. (2016) National Employment Standards. [Online] Fair Work Ombudsman. Available from: [Accessed on 22/09/16]

Handford, P.R. (1982) Damages for Injured Feelings in Australia. University of New South Wales Journal. [Online] Australasian Legal Information Institute. Available from: [Accessed on 22/09/16]

Hobart Community Legal Service. (2013) Negligence and the Duty of Care. [Online] Hobart Community Legal Service. Available from: [Accessed on 22/09/16]

Holme,R. ( 2004) MENTAL SUFFERING DAMAGES FOR BREACH OF CONTRACT. Victoria University of Wellington Law Review. 35. [Online] Available from: [Accessed on 22/09/16]

Rajendran, R. (2004) "Told Nervous Shock: Has the Pendulum Swung in Favour of Recovery by Television Viewers?". Deakin Law Review 7319(2). [Online]  Australasian Legal Information Institute.  Available from: [Accessed on 22/09/16]

Supreme Court of Tasmania. (2016) NEGLIGENCE & FORESEEABILITY: Doctrine Of Law Or Public Policy. [Online]  Supreme Court of Tasmania. Available from:[Accessed on 22/09/16]

The Australian Workers Union. (2016) What are the 10 National Employment Standards (NES)?. [Online] The Australian Workers Union. Available from: [Accessed on 22/09/16]

The Personal Injury Lawyers. (2016) What are Emotional Suffering Damages in Personal Injury Cases?. [Online] Available from: [Accessed on 22/09/16]

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